Solution-Calculate break even in pounds if the sales price

Calculate break even in pounds if the sales price increases

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Reference no: EM131791985

ABC is a company that manufactures a type of docking station for a laptop. You will analyse its income statement for the 2014 fiscal year (shown below).

Sales	£2,400,000
Variable cost of goods sold	1,680,000
Variable sales commissions	120,000
Contribution margin	600,000
Selling expense	105,000
Sales commissions expense	48,000
Administrative expense	212,000
Net income	235,000

Variable costs per unit are £6.

Required: (Round all answers to 2 decimal places and show ration calculation used. Display in table format)

Calculate break even in pounds.
Calculate break even in units.
Calculate break even in pounds if the sales price increases by 10% and fixed costs increase by £12,000.
Calculate break even in pounds if total sales increase by 10% and fixed costs increase by 10%.
Calculate sales (in pounds) to achieve £600,000 after tax (tax rate is 40%).

Reference no: EM131791985

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Calculate break even in pounds if the sales price increases

Reference no: EM131791985

Reference no: EM131791985

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